TIR Europe Sustainable Forestry & Natural Capital Fund
Fund Portrait
The Sustainable Forestry and Natural Capital Fund (SFNC) managed by Timberland Investment Resources Europe (TIR) is dedicated to investing in U.S. working forests, with an emphasis on the US South. The Fund aims to generate long-term financial returns and environmental benefits, targeting an annual return of 8-10% and a cash yield of 3%. It focuses on sustainable timber production, carbon sequestration, and ecosystem services, with investments that will allow investors to meet their ESG and impact objectives. The Fund's assets will be managed under strict sustainability standards, contributing to the achievement of several UN Sustainable Development Goals (SDGs).
The SFNC is an Article 9 fund in terms of the classifications created by the European Union's Sustainable Finance Disclosure Regulation (SFDR), i.e. a fund that has sustainable investment as its main objective. It aims to generate positive environmental or social impact alongside financial returns.
TIR has started fundraising for SFNC and plans to close the fund by end of 2024.
| INVESTMENT MANAGER | Timberland Investment Resources Europe (TIR Europe) |
|---|---|
| LINKEDIN COMPANY PAGE | Timberland Investment Resources Europe (TIR Europe) |
| FUND | TIR Europe Sustainable Forestry & Natural Capital Fund (SFNC) |
| TYPE STRUCTURE | Luxembourg Reserved Alternative Investment Fund (RAIF) under the form of a Société en Commandite Spéciale (Special Limited Partnership - SCSp) |
| DOMICILE | Luxembourg |
| DISTRIBUTOR SWITZERLAND | OpenFunds Investment Service AG |
| AUDITOR | Ernst & Young |
| CUSTODIAN | Hauck Aufhäuser Lampe Privatebank AG |
| REGULATOR | Commission de Surveillance du Secteur Financier, Luxembourg (CSSF) |
| PAYING AGENT SWISS | Società Bancaria Ticinese SA (Switzerland) |
| GEOGRAPHY | U.S. Major Timber-Producing Regions with primary emphasis on U.S. South |
| TARGET RETURN | 8-10% |
| SHARE CLASSES | EUR & USD share classes |
| CURRENCY | EUR, USD |
| MINIMUM SUBSCRIPTION | USD 5 m |
| FUND LIFE | 10 years, investors will then have an opportunity to remain invested for an additional 5-year period or to liquidate their positions in the Fund |
| INVESTMENT PERIOD | 3 years from final close |
| MANAGEMENT FEE | 1.5% per annum based on committed capital for the first five years and thereafter on Net Asset Value (NAV) |
| PERFORMANCE FEE | 20% above 7% hurdle |
| ISIN | Coming shortly |
| SFDR CLASSIFICATION | Art. 9 |
The TIR Europe Sustainable Forestry & Natural Capital Fund (SFNC) is designed as an ESG and sustainable investment vehicle that prioritizes both financial returns and environmental stewardship. Here’s how the Fund achieves its ESG and sustainability objectives:
- Selling Sustainable Timber Products: Sustainably growing, harvesting and selling high-quality, renewable timber resources for the production of end-use building, paper and packaging products.
- Carbon Sequestration: The Fund's forests are optimized for carbon storage, contributing to the fight against climate change. Carbon offsets generated from these forests are marketed in global compliance and voluntary carbon markets, providing investors with tangible environmental returns and opportunities to offset their carbon footprints.
- Protecting and Selling Sensitive Lands: Acquiring, securing and eventually selling sensitive lands to private conservation groups and public agencies that are interested in protecting their water, wildlife, scenic, recreational, historical and cultural attributes through the purchase of restrictive-use easements and fee-simple ownership rights.
- Developing Renewable Energy Resources Developing land-based renewable energy resources, especially solar energy infrastructure.
- Investing in solid wood products manufacturing facilities .The refurbishment or construction of sawmills, oriented strand board mills, plywood mills, etc.) in rural areas that are in need of economic development to spur job growth and enhance general prosperity.
- Compliance with International Standards: The SFNC is classified as an Article 9 fund under the European Union’s Sustainable Finance Disclosure Regulation (SFDR). This designation reflects the Fund’s commitment to sustainable investment and carbon emission reduction. The Fund’s operations adhere to the United Nations-supported Principles for Responsible Investment (PRI) and the Sustainable Forestry Initiative (SFI) standards.
